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USD/CAD drops further to 1.3060, oil eyes $40

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The Canadian dollar is gathering further traction vs. its American peer on Thursday, now dragging USD/CAD to the 1.3065/60 band, session lows.

    USD/CAD lower on USD-selling, oil gains

    Spot is trading at shouting distance from 5-month lows in the 1.3030 area following a continuation of the selling pressure around the greenback. In addition, the barrel of West Texas Intermediate continues to edge higher, trading closer to the critical $40.00 mark and thus resuming the rally after earlier weekly lows near $36.00.

    With the FOMC already in the rear-view mirror, crude oil dynamics will re-assume the role of the exclusive driver behind the pair’s price action, relegating today’s US releases to the passenger’s seat.

    USD/CAD significant levels

    As of writing the pair is retreating 0.30% at 1.3058 with the next support at 1.3034 (low Nov.3 2015) ahead of 1.3000 (psychological level) and finally 1.2827 (monthly low Oct.15 2015). On the other hand, a surpass of 1.3331 (200-day sma) would open the door to 1.3419 (20-day sma) and then 1.3681 (100-day sma).
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